NEC.AX - Risk

Pure Price Volatility Risk (Market Swings)

The business itself is financially solid (Financial Health 62/100, minimal insolvency risk). The high overall score (7/7) is driven primarily by extreme stock price swings (±35.2% p.a.) and steep historical drawdowns.

Volatility Risk

Transparent evaluation of price volatility (SRI), Beta, and historical drawdowns.

Volatility Risk Score

7/7 Very High

7 / 7 SRI Price Fluctuation & Beta

Very high volatility or fundamental risks. Significant loss potential; strictly for aggressive investors. Largely moves in line with the broader market.

Beta (Market Relation)

0.95x

Defensive

Volatility (5Y p.a.)

35.2% p.a.

5-Year Horizon

Max Drawdown (5Y)

-78.8%

5-Year Horizon

Sharpe Ratio

-0.77

Return / Risk

Speculative / High Risk: Score Basis:

Multi-Horizon Risk & Performance Matrix

Historical volatility, drawdowns, and risk-adjusted return across 1, 3, 5, and 10 years.

Volatility Expansion (3Y > 5Y) High Volatility

Timeframe	Volatility (p.a.)	Max Drawdown	Sharpe Ratio	Return (p.a.)
1 Year	—	—	—	-45.3%
3 Years	39.0%	-68.2%	-0.86	-30.5%
5 Years	35.2%	-78.8%	-0.77	-24.6%
10 Years	37.9%	-78.8%	-0.16	-3.4%

Automated Risk & Health Notes (Red Flags)

Single Stock Risk: Investing in an individual stock carries full company and insolvency risk (no fund diversification).

Structurally High Volatility: Above-average fluctuations persist across 5 to 10 years (35.2% p.a.).

Historical Stress Test: Maximum peak-to-trough drawdown of -78.8% in the extended horizon.

Corporate Governance & ISS Scores

Shareholder rights, board structure and audit safety (Scale 1 = Low Risk, 10 = High Risk)

Overall Governance Risk

7 ISS Score: 7 / 10

Audit Risk

6 ISS Score: 6 / 10

Board Risk

6 ISS Score: 6 / 10

Short Ratio